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B.C. municipalities are raising concerns over a proposed federal policy change that would allow First Nations bands to buy land and create satellite reserves anywhere in B.C. — even if they’re not next to their traditional territory.

A report to Metro Vancouver Wednesday warns the changes to the so-called “additions-to-reserve policy” would allow residential, commercial and industrial development in cities across B.C., resulting in the loss of land, taxes and costs associated with servicing agreements.

It could also create a “proverbial patchwork quilt” of jurisdictions, with municipalities wrangling with First Nations over bylaws and regulations on everything from fire services to house inspections.

“Under the federal proposal, there is this unrestrained ability to buy land anywhere coupled with the ability to proceed and convert it to reserve lands,” said Belcarra Mayor Ralph Drew, who sits on Metro’s aboriginal relations committee and is also the Metro representative to the Union of B.C. Municipalities aboriginal committee.

“(First Nations) don’t necessarily have to come up with the money themselves, they just need to partner with someone who has big pockets.”

The additions-to-reserve policy was developed in 1972 to allow First Nations to add land to existing reserves or to create new reserves. It had previously only allowed additions to reserves on lands next to bands’ traditional territory.

Metro, which is already facing a massive on-reserve First Nations building boom across the region, maintains it realizes the benefits economic development can bring to First Nations reserves. But the proposed changes would not only create jurisdictional headaches, mayors say, but underscore ongoing concerns over funding municipal services, especially on booming reserves..

The Squamish First Nation, for instance, could see as many as 30,000 non-aboriginals living in condos on reserve land near Park Royal, while the Kwantlen First Nation in Maple Ridge and Tsleil-Waututh in North Vancouver also plan to develop their reserve lands. But in many cases, the First Nations will pay for some services but leave local taxpayers to foot the bill for others.

Metro is also concerned the move could affect the regional growth plan, which has specified pockets for growth and development across the region.

“It doesn’t matter if it’s Maple Ridge or Surrey or wherever,” Drew said. “When these things occur, First Nations expect municipalities to provide services; they will take water, sewer and fire protection but won’t pay for libraries and recreation. Those are bones of contention now and this is only going to exacerbate it.”

Drew said he not sure why the federal government is proposing to change the policy, which would allow satellite reserves in cities like Burnaby, which has no reserves, and “turn community planning on its ear.”

It could also potentially affect the agricultural land reserve — with about 9,403 hectares, or 53 per cent, of ALR land in Delta — while local businesses may also bear the brunt of the tax-free communities.

“If they bought a large block in middle of Surrey and it’s a tax-free zone, imagine the impact on the surrounding businesses,” Drew said.

The report also suggests that a requirement for First Nations to negotiate agreements with local governments appears to have been watered down.

The policy doesn’t apply to treaty nations like Tsawwassen. And the Musqueam First Nation maintains Metro Vancouver should not tar all other First Nations with the same brush. The small Vancouver-based band has long had an agreement with the city of Vancouver for municipal services, Musqueam band councillor Wade Grant said, and would willingly do the same in other cities if it was allowed to expand with satellite reserves.

“(First Nations) should be dealt with on an individual basis,” Sparrow said. “First Nations have their own opinions, history ... the Musqueam is as different to the Squamish as Vancouver is to Burnaby. When we move forward with any initiative we want to make sure we have a good working relationship with our neighbours.”

Sparrow noted the chance to buy land and create satellite reserves would be an economic boon to the small band. “Historically we have not had much land to benefit (from) economically or call our own because it has been expropriated by Metro Vancouver,” he said, adding his band welcomes “any opportunity for us to move forward and increase our land base and create economic development for our people.”

Both Metro and the UBCM plan to file a list of questions with the federal government’s Department of Aboriginal Affairs and Northern Development, which has extended the deadline for feedback. The federal government did not return a request for interviews by press time, referring The Vancouver Sun to its website. The province declined to comment.

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